VAT allocation rules

[Former Member]

Hi,

We have following scenario applicable to allocate VAT on a trade invoice :

1. VAT to be applied for a product on a trade invoice is depending of the combination of the country of the selling organization & the country of the customer ship-to location.

In Project 'ABC', it is found that this is currently implemented in SAP as

"the VAT to be applied for a product on a trade invoice is depending of the combination of the country of the plant code from which the product is shipped and the country of the customer ship-to location".

For example :

1. In case a French,Client Organization invoices a French customer for product shipped from a DC in

Germany, the VAT rules are to de defined via a country France / France combination setting (while in

Project 'ABC',this is done by Germany / France combination).

2. In case a Netherlands Client Organization invoices a Germany customer for product shipped from a

DC in Belgium, the VAT rules are to de defined via a country Netherlands / Germany combination

setting (while in project 'ABC' this is done by Belgium / Germany combination).

The way, project 'ABC'' rules are implemented in SAP, represents two issues :

3. Unnecessary, fault sensitive VAT data maintenance : in case a product is shipped from a DC in

another country (e.g. in case of availability issues), then VAT rules are to be defined in Project 'ABC'

settings for the new DC country / customer country combination.

If not, no VAT will be allocated (without users being aware)

4. In case a Belgian Client organization ship product from a French to a customer in Belgium :

Belgium only VAT rules should apply.

In case a Netherlands P&G organization ship product from a French to a customer in Belgium :

combination Netherlands / Belgium VAT rules should apply.

But, in Project 'ABC' Prof VAT is determined through the France / Belgium combination in both

scenarios.

Please advise how VAT solution can work from pricing perspective.

Any pointers on this will be highly apperciated.

Regards

Tushar

[Former Member]

Hi Tushar,

For the point 1, 2, 3- Plant/ Country of despatch/ Country of Customer key combination needs to be maintained. There is no option but for maintaining for all possible export combinations.

For the point numbers 4 & 5- Introduce a key combination with sales organisation. For Ex: Sales Org/ Plant/Country of despatch/Country of Customer. Pritorise this in your access sequence depending upon your requirements. This should solve your problem.

Regards,

Subbu.